Target Hospitality Corp.

Good morning, ladies and gentlemen, and welcome to the Target Hospitality third quarter 2024 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star followed by zero for the operator. This call is before or after. I would now like to turn the conference over to Mark Shook. Please go ahead.

Thank you. Good morning, everyone, and welcome to Target Hospitality's third quarter 2024 earnings call. The press release we issued this morning outlining our third quarter results can be found in the investor section of our website. In addition, a replay of this call will be archived on our website for a limited time. Please note the cautionary language regarding forward-looking statements contained in the press release. This same language applies to statements made on today's conference call. This call will contain time-sensitive information as well as forward-looking statements which are only accurate as of today, November 12, 2024. Target Hospitality expressly disclaims any obligation to update or amend the information contained in this conference call. to reflect events or circumstances that may arise after today's date, except as required by applicable law. For a complete list of risks and uncertainties that may affect future performance, please refer to Target Hospitality's periodic filings with the SEC. We will discuss non-GAAP financial measures on today's call. Please refer to the tables in our earnings release posted in the investor section of our website to find a reconciliation of non-GAAP financial measures referenced in today's call and their corresponding gap measures. Leading the call today will be Brad Archer, President and Chief Executive Officer, followed by Jason Vlasic, Chief Financial Officer and Chief Accounting Officer. After their prepared remarks, we will open the call for questions. I'll now turn the call over to our Chief Executive Officer, Brad Archer. Thanks, Mark.

Good morning, everyone, and thank you for joining us on the call today. The strength and targets underlying business fundamentals continues to support strong quarterly performance. These fundamentals, along with Target's proven operational flexibility, support an efficient operating structure and unmatched network capabilities. Together, these elements support a highly durable operating model and our ability to deliver strong results through business cycles. Our consistent performance has solidified our strong financial position while simultaneously providing premium hospitality solutions to our world-class customers. This focused commitment has established an ideal platform centered on the strength of our balance sheet and optimized liquidity position, to continue advancing our diversifying growth initiatives. Now turning to our segment. In the government segment, our PCC community continues to serve as a cornerstone in the U.S. government's critical domestic humanitarian aid mission. This community stands as the longest-serving influx care facility in the United States, and we anticipate a normal course renewal of this contract in the coming weeks. marking its fifth year of continuous operation. Regarding our HFS segment, we continue to benefit from our premier service offerings and the value our world-class customers find in our network capabilities. These attributes have supported a 12% increase in customer demand since the fourth quarter of 2023, further highlighting the benefits of our unique capabilities and our strategically located network. Additionally, we continue to focus on identifying incremental operational efficiencies across our segment and evaluate opportunities to strengthen margin contribution through enhanced network optimization. Our existing contract portfolio, coupled with consistent customer demand, continues to support a high degree of revenue visibility and industry-leading cash conversion. With an intentional focus on solidifying our balance sheet and optimizing our liquidity profile, we have established and enhanced financial position. This commitment has created an ideal platform as we continue to focus on allocating capital to value enhancing growth initiatives with the objective of expanding and diversifying our contract portfolio. We continue to evaluate an attractive pipeline of strategic growth initiatives, which align with our existing service offerings and capabilities. These naturally adjacent opportunities can establish multiple avenues to expand Target's long-term growth profile by broadening our customer reach and in-market exposure. Within the government in-market, we remain engaged with multiple federal agencies on a variety of solutions they are seeking to implement along the U.S. southern border. Our recent dialogue has also included conversations with Republican representatives regarding potential solutions they are considering. As Target continues to evaluate these opportunities, we are actively seeking to utilize Target's existing strategically located South Texas assets to support these solutions. Further, we continue to pursue a growing pipeline of non-government growth initiatives. As we have previously discussed, these opportunities include large industrial projects throughout the U.S., including technology infrastructure, energy transition, and the increase in domestic rare earth development. As a reminder, the size of these growth opportunities inherently leads to longer sell cycles. While we are pleased with the continued dialogue on many of these opportunities, the timing and final outcomes are uncertain and can be difficult to predict. Additionally, we are evaluating select inorganic opportunities, which we believe can offer exposure to attractive end markets, while remaining centered around our existing core competencies. These opportunities, coupled with our organic growth initiatives, offer the ability to accelerate our customer diversification and growth trajectory. As we evaluate these initiatives, we remain committed to achieving defined objectives of our growth strategy. Our primary objective remains focused on diversifying our contract portfolio and broadening our customer reach, while continuing to generate strong operating income and industry-leading cash conversion. In summary, the strength of our existing customer base, network capabilities, and proven operational flexibility consistently supports the achievement of our financial goals. This execution has solidified our financial position centered on an optimized balance sheet and robust liquidity profile. These elements support our ability to continue providing premium hospitality solutions to our world-class customers while simultaneously pursuing attractive growth opportunities. I'll now turn the call over to Jason to discuss our third quarter financial results in more detail.